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Priced To Sell: Tips To Pick A Listing Price

Finding the perfect price for your home isn't always easy. Here's how to know you've hit the right number.

The price isn't always right. When it's wrong, buyers may move on to the next home without giving yours a second thought. Investing the time and effort required to determine the right price for your property can expedite the sale and put the money you desire in your pocket.

Research Comparable Properties

It is always advisable to compare apples to apples and oranges to oranges when setting a price for your home. Start by looking at houses with similar square footage and features. When comparing homes, you should only consider those within a variance of up to 10% for both square footage and lot size.

Focus only on properties located within 1/2 mile to 1 mile of your home. Then narrow your search by the home's age, the neighborhood, and the quality of schools if they are different. This research will give you a reasonable estimate of the value of the property.

Of course, the value of the property and what homes are selling for can be two different things. It is essential to examine recent sales in the area. By comparing the listing price to the sales price, you can determine whether the properties were over/underpriced from the start.

Always Consider the Season

Home prices typically rise during the summer months as families prepare to move into new homes and school districts. However, listing a home in the summer months isn't a slam dunk that you'll get the price you want. That's because other sellers are also eyeing the summer months to place their homes on the market. This trend creates an oversupply of houses which can drive prices lower.

Be Mindful of the Appraisal

The buyer's lender is going to order an appraisal before they'll approve the loan. That appraisal should be as close as possible to the sales price. The lender may decline the loan if they feel that the value of the home is significantly less than the agreed-upon price.

Factor in the Future

Circumstances within the community can increase or decrease the home's value. Homes in communities where large employers are in the process of expanding have a higher perceived value. Conversely, homes in communities where the economy is struggling or noticeably shrinking can have a lower value. These factors are entirely out of your control when you are selling your home but do have a significant impact on your property's perceived value.

Pricing in a Buyers, Sellers, or Neutral Market

Examining recent sales data will be a telltale sign if it's a buyer's, seller's, or neutral market. In a buyer's market, you want to be as close as possible to recent sales of comparable properties when selling your home. In a seller's market where inventory is low, you can add 5-10% to your asking price. In a neutral market, you'll want to set the price to match the market trend, which typically involves adding 1-2% per month since the last comparable sale.

Getting the Most for Your Home

There are two things you absolutely must do when setting a price for your home. To get the highest price possible when selling your home, you must first put your emotions aside. To you, it's a home filled with years of memories: To a buyer, it's still just a house. Second, you must get the house in top condition. Fixing the trim, trimming the landscape, and painting will go a long way towards justifying the price you put in the listing.

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Priced To Sell: Tips To Pick A Listing Price

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